United Carpets Group PLC (LON:UCG) shares were floored on Wednesday after the carpets and floor coverings retailer warned investors that conditions remain challenging.
Like its bigger peer Carpetright PLC, UCG is having to deal with fewer homeowners moving houses, which is typically when they spend big on things such as new carpets and beds. Weaker consumer confidence is also affecting retailers more generally.
READ: Carpetright becomes latest retailer to ask creditors for help
While some – supermarkets mainly – got a lift from this summer’s warm weather and the World Cup, AIM-listed United said they just “added further distractions”, having a “significant adverse impact” on sales.
As a result of the headwinds, like-for-like sales over the past six months slipped 1.9%, despite the company injecting more cash into its marketing budget to try to get people through its doors.
Perhaps unsurprisingly, UCG is now guiding for “significantly lower” first-half profits compared to last time around.
Bosses sound more optimistic on the second-half outlook, having noted previously that its stores are generally well-located with “competitive” rents.
The confidence wasn’t shared by the market, with the stock falling 5.8% to 7.3p.